AUDCAD - short at historical structure

FX:AUDCAD   Australian Dollar/Canadian Dollar
1582 17 27
Trading is all about finding probabilities that give you an edge. A historical support/resistance level is such an edge. If you take a look on the daily chart you will see that the current level has been serving both as support and resistance for numerous times in the past.


Don't you think it's likely that we'll see a reversal here (even if temporary) that we can take advantage of ? This price level, if we stay below, bears will try to repeat the sell opportunity that was successful the previous time, and the ones that were not on board for the previous short will like to try their chances now.

On top of the S/R level , we are at the 0.618 fibonacci retracement of the previous move down and we can see bullish divergence on the RSI .
Personally I will look for an additional confirmation like a reversal candle or a double top , which even raises the chances of being right.

What do YOU think ?

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Trade active: Shorted 0.9840
Trade closed: stop reached: Good analysis, followed the plan, but did not work out.
Just one of those losing trades, which is part of trading.
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lmao what happened here? waitttt commmeee bacckkkk
+1 Reply
It looked really nice, when I was opening - couple pips above you, it seemd as perfect wave count, waiting for reversal....
well, lets see...
+1 Reply
Well, the market is always right, we are not .. That's why we put stops :)
Anyway, it can still reverse, a trade is not lost until the stop loss is hit.
albert.callisto Nico.Muselle
I think it's interesting to look why the trade failed, to improve ourselves. Of course it's always easier afterwards to understand the whole picture. Anyway, I switch to Ichimoku and see that there was a cloud twist nearby. Such thin areas are providing some path of least resistance to the price and, considering that Kijun was broken with ease, there was a fairly good probability that the price would try to reach the upper side of the thin cloud (your stop).
pointoftangency Nico.Muselle
Stop hit
+1 Reply
Nico.Muselle MOD pointoftangency
Yep ... just proves again that you cannot win them all :)
200 sma
+1 Reply
Hi Nic ! I too shorted as per your idea and as it is about to touh h4 sma. Thank you
+1 Reply
Additional confirmation ! I like it ! Good luck with your trade ! :)
Hi Nico i'm curious as to why you've shorted now whilst waiting for confirmation of a reversal candle
+1 Reply
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